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European Gasoline Trades at Above $700; BP Buys Two Diesel Cargoes: Wrap
European gasoline barges traded at more than $700 a metric ton for the first time in a month as Royal Dutch Shell Plc bought for at least a sixth day. BP Plc purchased two diesel cargoes.
Shell, having bought half the lots that changed hands yesterday, purchased from Chevron Corp. at $693 a ton and two shipments from Mabanaft BV at $706 a ton, according to a Bloomberg survey of traders and brokers monitoring the Argus Bulletin Board. Gunvor International Ltd. sold two lots to Cargill Inc. at $701 a ton.
Deals of Eurobob grade motor fuel were done yesterday from $684 to $690 a ton. Ethanol is added to Eurobob to make finished automotive fuel. So-called barge deals are typically of no more than 5,000 tons.
Europe’s gasoil futures contango widened after trading at the narrowest level in a month as German consumers started to stock up for winter.
Gasoil for September delivery traded at a discount of $2.50 a metric ton to the October contract on London’s ICE Futures Europe exchange before increasing to $3.25 as of 5:50 p.m. local time. This compares with $2.75 yesterday.
“For the last two weeks we’ve been seeing an uptrend for sales,” Benjamin Nagel, sales manager at Peter & Krebs Mineraloelhandels GmbH, a fuel distributor, said from Berlin.
Germany is Europe’s biggest market for gasoil, which is used mainly in heating. A market is in contango when supplies for nearby delivery trades at a lower price than contracts for delivery in subsequent months.
September gasoil added $17.25, or 2.7 percent, to $663.75 a ton on ICE.
BP bought a 20,000-ton diesel cargo from Vitol Group for delivery to Le Havre in France from Sept. 18 to Sept. 22 and a 10,000-ton shipment from Preem AB for delivery to London Thames on the same dates, according to a survey of brokers and traders monitoring the Platts pricing window.
Gunvor sold a 30,000-ton cargo to Vitol for delivery to the Syrian port of Banias from Sept. 18 to Sept. 22, according to the survey. Mercuria Energy Ltd. sold a 30,000-ton diesel shipment to Glencore for delivery to the Italian port of Genoa from Sept. 18 to Sept. 22.
BP sold jet fuel on the ARA barge market for at least a third day, according to the Platts survey.
BP sold to Total SA’s Petrofina unit at a premium of $44 a ton to October ICE gasoil futures and to Shell at a premium of $45 a ton to that contract, the survey showed.
Deals were done yesterday at a premium of $47 a ton to the September ICE contract. BP did six of seven deals yesterday, according to the Bloomberg survey.
Ultra low sulfur diesel barge differentials rose.
Barge deals for intermediate grade diesel were done at premiums from $24 to $26 a ton, according to the Platts survey. That compares with $21 to $25 a ton to ICE futures.
Summer grade barges traded at premiums from $19.50 to $20 a ton to gasoil, little changed from yesterday, the survey showed.
To contact the reporter on this story: Rachel Graham in London rgraham13@bloomberg.net
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